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Popular Word Problems >

Suppose you won a 50,000 in a lottery and put the money in an account that earns 5% annual interest compounded continuously. How much will you have in the account after 12 years?

Solution

S u pp ose yo u w o n a 50, 000 in a l o tt ery an d p u t t h e m o n ey in an a cco u n t t ha t e a r n s 5% ann u a l in t eres t co m p o u n d e d co n t in u o u s l y . Ho w m u c h w i ll yo u ha v e in t h e a cco u n t a f t er 12 ye a rs ?

Solution

Amount : 91105.94

Solution steps

Translate the problem into an equation:

A = 50000 e^{0.05 \cdot 12}

50000 e^{0.05 \cdot 12} = 91105.94001 \dots

Round to the nearest hundredth:

91105.94

Amount : 91105.94

Popular Examples

Jason had 3,240 in a savings account with simple interest. He had opened the account with 3,000 exactly 1 year earlier. What was the interest rate?the difference of a number and 15 is less than-32 8 less than the quotient of a number and 2 is 12.the sum of two numbers is-64. their difference is-6. find the numbers After 2 years, 30,000 deposited in a savings account with simple interest had earned 4,800 in interest. What was the interest rate?